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The domestic economy contracted by 11.1% during the second quarter of 2020 compared to a decline of 3.6% recorded in the corresponding quarter of 2019.
According to Namibia Statistics Agency (NSA) during the review period, 2013:Q1 to 2020:Q2, this is the highest contraction recorded.
“The contraction in the economic performance during the second quarter of 2020 is observed across the entire sectors of the economy as domestic activities were under pressure due to the impact of the COVID-19 measures that was put in place for the country to mitigate the spread of the virus. The measures entailed among others, closing of the country’s borders and only allowing businesses that provides essential services to operate,” said NSA Stastician-General Alex Shimuafeni.
Shimuafeni said double digit reductions were recorded in some of sectors of the economy. ‘Hotels and Restaurants’ recorded the highest decline of 64.2% compared to a growth of 12.3% of the same quarter of 2019. While other services which includes ‘art, entertainment, recreation activities, domestic workers, caretakers, tutors, gardeners etc’ recorded the second highest decline of 43.7% during the review period.
However, Shimuafeni, said of the 16 sectors’ under observations, three sectors recorded positive performance during the period under review. The improved performance were observed in ‘Agriculture and forestry’, ‘Information and communication’ and Health sectors that recorded growth rates of 47.2%, 11% and 6%, respectively.
“The positive performance in ‘Agriculture and forestry’ is due to a bumper harvest by the farmers resulting from good rainfalls experienced during the period under review,” he said.
Source of original article: Namibia Economist (economist.com.na).
The content of this article does not necessarily reflect the views or opinion of Global Diaspora News (www.GlobalDiasporaNews.com).
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